Tucson Electric Power - Request for an Increase in Rates - Statement from RUCO's Director

A Statement by the RUCO Director

Today, February 29, 2008, the Residential Utility Consumer Office files its testimony in the Tucson Electric Power Company’s application for rates to go into effect on January 1, 2009.  RUCO rejects two of the rate-setting methods proposed by TEP and asserts that the Company’s rates will continue to be regulated based on its cost-of-service, just as is the case for other monopolies regulated by the Arizona Corporation Commission.  TEP’s overstated rate requests, ranging variously from increases of approximately 15 percent to 23 percent, are found to be excessive by RUCO’s professional analysts.  Instead, RUCO proposes that the company receive an overall revenue increase of 4 percent only.  In two weeks, the last piece of our filing—the design of rates for each customer class—will reveal the actual impacts on the bill that consumers can expect.

Stephen Ahearn

Director, RUCO

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